Jefferson Capital (JCAP) Registration Filing summary

Company overview and business model

• Purchases and manages charged-off and insolvency consumer accounts in the US, Canada, UK, and Latin America, focusing on underpenetrated asset classes such as telecom, auto, utilities, and small balance credit cards.

• Operates through a variable cost model, leveraging proprietary analytics, data, and compliance to drive collections and maintain efficiency.

• Expanded internationally via acquisitions (Canaccede in Canada, Refinancia in Colombia) and organic growth, with a focus on compliance and consumer-centric practices.

• Business lines include Distressed (nonperforming loans) and Insolvency (bankruptcy-related receivables), with diversified collection channels (internal, external, legal, offshore).

Financial performance and metrics

• Reported net income of $128.9M in 2024, $111.5M in 2023, and $64.2M for Q1 2025; adjusted EBITDA of $242.1M in 2024, $168.2M in 2023, and $92.0M for Q1 2025.

• Revenue grew at a 24.7% CAGR and net income at a 42.0% CAGR from 2019 to 2024.

• As of March 31, 2025, ERC (estimated remaining collections) was $2.84B, up 3.4% from year-end 2024.

• Leverage ratio (net debt/adjusted cash EBITDA) was 2.17x as of March 31, 2025, with $1.2B in borrowings and $27M in cash.

• Cash efficiency ratio was 68.7% in 2024, outperforming primary competitors.

Use of proceeds and capital allocation

• Net proceeds from the IPO will be used to repay borrowings under the Revolving Credit Facility and for general corporate purposes, including growth, technology, working capital, and potential acquisitions.

• Management will have broad discretion over the use of proceeds; no material acquisition agreements are in place at this time.